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ELRCPartially AllowedNot stated in the judgment

Thomas Nyangi Mwita v Kenya Commercial Bank Limited [2016] KEELRC 21 (KLR)

Employment and Labour Relations Court
19 December 2016
989 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court granted KCB only a conditional stay of execution because it waited nearly a year and had filed no actual appeal.

What this practically means

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Executive summary

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Kenya Commercial Bank Limited, the respondent in an employment cause, moved the court by Notice of Motion dated 7th November 2016 seeking stay of execution of the judgment delivered on 17th December 2015, in which it was ordered to pay the claimant loss of salary, compensation, notice pay and costs. The bank said the decretal amounts were colossal (about Kshs.9,597,708.00), that undisputed sums of Kshs.3,999,060.00 had already been paid in good faith, and that it wished to deposit the disputed balance into a joint account pending appeal. The claimant opposed, pointing out the application was filed nearly a year after judgment, that no appeal had been lodged, that the agreed joint account was never opened within the agreed time, and that the security offered was inadequate. The court found the application inordinately delayed, noted that no appeal or draft memorandum of appeal was on record, and held that a Notice of Appeal is merely an intention which cannot hold the other party back absent good cause. Applying its earlier decision in Peter Kamwi v Standard Group Limited, it held that a party's indigence does not justify denying execution of a legitimate court order. However, adopting the claimant's counsel's own offer, the court granted a conditional stay: all due amounts with interest to be deposited within 14 days into an interest-earning joint account in a bank other than the respondent; the deposit to become available to the claimant if no appeal is filed within 45 days; auctioneer costs of Kshs.776,956.00 to be borne by the respondent; and no costs of the application.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether stay of execution of the judgment of 17th December 2015 should be granted pending appeal
  2. 2.Whether the application filed some 11 months after judgment was brought without delay and in good faith
  3. 3.Whether an appeal exists on record to ground the stay sought

Key legal issues

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01

Whether delay of about 11 months in applying for stay disentitles the respondent to the order

Holding

Yes - the delay and the absence of a filed appeal meant the claimant should enjoy the fruits of judgment, though a conditional stay was nonetheless granted on the claimant's own offer

Reasoning

The judgment was delivered on 17th December 2015 and the application filed on 8th November 2016, nearly a year later. No appeal or draft memorandum of appeal was on record; only a Notice of Appeal, which is a mere intention. The respondent's decision to negotiate outside court left it exposed. The court held the claimant should not be denied execution, but adopted counsel's offer of a joint account as the basis for a conditional stay.

p. 2
02

Whether the indigence of the claimant justifies staying execution

Holding

No - indigence is not a sufficient ground to deny execution of a legitimate court order, following Peter Kamwi v Standard Group Limited

Reasoning

The court adopted its prior decision in Peter Kamwi v Standard Group Limited, Cause No.176 of 2015, holding that a judgment debtor cannot resist execution merely by asserting the decree-holder would be unable to refund monies if an appeal succeeds. Doing so would cause serious injustice and undermine the rationale of the order granted.

p. 2

Legal principles established

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  • A Notice of Appeal is not the appeal itself; it is only an intention to appeal and cannot be used to hold the other party back
  • The indigence of a party is not a sufficient ground to deny another party execution of a legitimate court order

Court orders

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  1. 1.Stay of execution granted conditionally: the respondent to deposit within 14 calendar days all due amounts with interest into an interest-earning account in the joint names of the parties' advocates
  2. 2.The account to be held in a bank other than the respondent
  3. 3.Where no appeal is filed within 45 calendar days, the deposit order lapses and the amounts become available to the claimant
  4. 4.Auctioneer costs of Kshs.776,956.00 to be paid by the respondent
  5. 5.No costs of the application

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Not expressly stated; the court dealt with a Notice of Motion for stay of execution pending appeal under its procedural rules (not cited in the judgment)

Relief refused

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Unconditional stay of execution pending appeal

The application was filed about 11 months after judgment, no appeal (only a Notice of Appeal at most) was on record, and the claimant should not be denied the fruits of his judgment

p. 2

Costs of the application

The court ordered no costs on the application

p. 3

Costs

No costs of the application; auctioneer costs of Kshs.776,956.00 to be paid by the respondent as a condition of the stay

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Where the Notice of Appeal has been filed, that is with this court and not any other court. A Notice of Appeal is not the Appeal to the Court of Appeal as this only serves as an intention.
p. 2Effect of a Notice of Appeal
the indigence of a party is not a sufficient ground to deny a party execution of a legitimate order of the court.
p. 2Execution and indigence
Stay of execution is hereby granted subject to the following Orders and directions;
p. 2Final orders - conditional stay granted
(c) Where there is no Appeal filed within the next 45 calendar days, the order (a) shall lapse and amounts deposited become available to the Claimant;
p. 3Final orders - lapse of stay condition
(d) Auctioneer costs of kshs.776,956.00 shall be paid by the respondent; (e) No costs.
p. 3Final orders - costs

Issues in the judgment

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minor

The claimant is not named anywhere in the judgment; the parties are referred to only as 'Claimant' and 'Respondent'

minor

The judgment refers to the respondent bank as both 'respondent' and 'Respondent' while describing itself as aggrieved and appealing, a possible role confusion given it moved the court as applicant

minor

Typographical error in the application: 'Costs of this application be in the cuase.'

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Thomas Nyangi Mwita v Kenya Commercial Bank Limited [2016] KEELRC 21 (KLR)", Case Analysis (2016). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/21/eng@2016-12-19

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.